The system is divided into 10 zones, see the chart below for yearly estimated growth rates.
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Energy intensive areas in the Central, Occidental and Noreste system zones are almost 60% of the total consumption, and also where most of the infrastructure is concentrated.
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Large and medium Industry make up almost 60% of the consumption.
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| System Zone | Yr Growth 2020 - 2030 |
|---|---|
| SIN | 3.6 % |
| Central | 2.9 % |
| Oriental | 3.4 % |
| Occidental | 4.2 % |
| Noroeste | 3.9 % |
| Norte | 3.7 % |
| Noreste | 3.7 % |
| Penisular | 4.1 % |
| Baja California | 4.0 % |
| Baja California Sur | 3.7 % |
Based on nodal prices (24/7 nodes in the systems), the production and demand are matched on a Day-Ahead Market and a Real Time Market.
Energy dispatch and prices are based on generation marginal costs, transmission power flows and N-1 reliability criteria.
Secondary Regulation and Rolling and Auxiliary Reserves are dispatached in both Energy Markets itegrating CENACE requirements and generation opportunity cost.
A yearly Capacity Balance Market is organized to set the Capacity Price assuming the actual capacity availability in the critical hours, the Optimal System Reserve Margins and the reference technology LCOE..
CELs are assigned by CRE to each MWh produced by clean energy
SENER sets a yearly purchase obligation to the end users and suppliers. A CEL Balance Market will be soon under operation.
Transmission financial rights (DFTs) provide a risk hedge against marginal price differences between two nodes.
Volatility between nodal prices is mainly caused by congestion, so DFTs set a fixed congestion marginal componets payment.
As under any other OTC agreement, they allow market participants to freely settle the financial conditions (price, tenor, reference node, etc.) on any market product, but since the MEM is informed about the product involved, it also provides great advantages in terms of market liquidations and market guarantees
Since qualified suppliers in Mexico usually cannot provide a strong balance sheet (new companies that doesn’t have strong physical assets), they secure their Hedge Agreements using their end users guarantees (corporate, liquid and regulatory) through a Trust, that will route the cash flows and guaranteed derived from the Power Supply Agreements. When using these structure to provide financial leverage for a generation project, the CCDE generally is structure under a take-or-pay approach.
